Comcast and Disney Accelerate Hulu Sale Amid High Stakes and Skyrocketing Valuations

Comcast Corp CMCSA and Walt Disney Co DIS recently adjusted their agreement to expedite their discussions about the sale of Hulu, setting a date for September 30. 

Currently owning one-third of Hulu, Comcast initially planned to initiate sale talks with Disney, which holds the other two-thirds, in January 2024, Variety reports.

Comcast CEO Brian Roberts, speaking at a Goldman Sachs investor conference, emphasized the potential value of synergies related to Hulu, estimating them at $30 billion, even before considering the intrinsic worth of Hulu itself. 

The earlier minimum valuation of $27.5 billion for Hulu was a "hypothetical" figure when Disney "controlled the company," according to Roberts. 

He stressed that the company is "far more valuable" today than five years ago.

If Comcast sells its Hulu stake, the proceeds will go to shareholders. Roberts pointed out that analyst reports suggest that a buyer, depending on their identity and intentions, could generate billions of dollars in synergies. 

He stated, "Just that piece of the synergy and the churn benefit could be worth $30 billion. And that's before you ascribe any value to the actual Hulu."

Goldman Sachs is now involved in the appraisal process. Roberts mentioned that both companies sought to expedite the process to provide clarity for their investors. 

Roberts acknowledged that Hulu is a unique asset, and its sale could draw many interested bidders.

During the conference, Roberts addressed the Disney-Charter dispute. He expressed that such arguments are not entirely unexpected, mainly when multiple distributors operate in the same geographical area. 

Roberts emphasized Comcast's position as a linear and streaming provider and highlighted that consumer preferences steer the industry toward simplicity and value for money.

Earlier, Comcast claimed that Disney, the majority owner, failed to launch Hulu outside the U.S., ruining its prospects. The parties alleged broken promises, legal threats, and dueling valuations.

Price Actions: DIS shares traded lower by 0.49% at $80.79 on the last check Wednesday. CMCSA shares traded higher by 1.25% at $45.12.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.